DOH - Seminole County Requisition Process Kaizen Event · Udgit, Sara, Parnav Form is clear, clean,...

DOH - Seminole County

Requisition Process

Kaizen Event

January 13-17, 2014

© 2014 Continual Impact LLC 1

Reduce the Transactional

cost of Goods and Services

(our labor to perform the

transaction and the price of

the goods and services

themselves)


Reduction in labor required to process an

order > 40%

Upside: Cycle time to process the order >

at least 1 week

Cost of the goods and services targeted

reduced > $4500/qtr

Upside: the process and changes can be

applied to additional goods resulting in

even more significant savings © 2014 Continual Impact LLC 3

Achieving sustainable performance beyond what is

thought possible by unlocking the limitless capacity

of an organization’s most valued resource – its

people

Through the identification of focused improvement

areas, elimination of non-value added work through

the use of improvement methods to diagnosis and

solve problems, test solutions, measure results,

learn, and install sustainable change



A group of methods for making

work process improvements.

Planned teamed events conducted

in the workplace that systematically

uncover waste in a work process

and eliminate it in rapid fashion…

Value Is

Anything that

a. the customer recognizes

as valuable and is willing

to pay for, AND

b. Changes the product or

information, AND

c. Is done right the first time.


Waste Is

Anything that

consumes

resources without

adding value

1. Moving

2. Stopping

3. Searching

4. Inspecting

5. Getting Ready

6. Things Gone Wrong

7. More Than Needed

8. Not Needed



Daily Newspaper

Day 1



What

Measured

How Measured Target

How Much By When

Quality:

Submitted

order forms

% = correct & complete forms /

submitted forms

-incorrect forms recorded by Michael

& Mitzi (daily)

-total forms captured by Udgit

(monthly)

> 75% May 1, 2014

Quality:

Submitted

purchase

requisition

% = correct & complete forms /

submitted forms

-incorrect forms recorded by

Tallahassee (monthly)

-total forms captured by Udgit

(monthly)

> 90% May 1, 2014

Cost:

Reduced cost

of purchased

items

$ = negotiated savings when price is

lower than preferred vendor

recorded by Udgit (quarterly)

$ = when multiple quotes are

obtained price is lower than

preferred vendor recorded by

purchaser (quarterly)

# = new negotiated vendors on the

preferred vendor list (quarterly)

$4500 / qtr

5 new negotiated vendors/ qtr

May 1, 2014

Time Total employee labor time (Form

completion to submission to State).

5 time studies completed monthly.

25% less time than January

2014 Waste Analysis

estimation

March 1,

2014


Lots of opportunities! Things gone wrong (defects and

rework), Stopping and waiting, Inspection and

approvals, Searching…and we found even more

observing the process!

Day 2



Value - Waste Analysis - Sub Process MapDate:

Rate/hr.: $25

Step No. Step / Activity

Work

Content

Time

(mins.)

Elapsed

Time mins. (including wait

time between

step)

Frequency

(# times

completed

per week)

Waste Type (see

Forms of Waste

Table)

WasteValue-

Added

Confidence in

eliminating

waste (%)

Potential

Reduction in

Time mins./

wk.

Potential

Reduction in

Cost / wk.

Priority

(High, Med,

Low)

Identify/Clarify item need 15 1440 1stopping/searching/

movement/ready99% 1% 50% 712.8 297$ med

Approve 5 1440 1stopping/inspecting/

not needed100% 0% 50% 717.5 299$ med

Quotes 360 4800 1 stopping/moving 93% 8% 50% 2220 925$ highBefore Before After After

Submit Requisition 20 480 1searching/getting

ready/stopping96% 4% 40% 184 77$ low

Step /

Activity

Work

Content

Time

Elapsed

Time mins. (including wait

Work

Content

Time

Elapsed

Time mins. (including

MFMP Approve 15 7200 1

inspecting/more then

needed/things gone

wrong/stopping

100% 0% 70% 5029.5 2,096$ high

Identify/

Clarify

item

15 1,440

15 120

415 15360Approv

e 5 1,440

- -

Quotes 360 4,800

180 3,360

Identify/Clarify item need 15 120 1 13% 0 -$ med

Submit

Requisit

ion

20 480 20 480

Quotes 180 3360 1 95% 5% 0 -$ high

MFMP

Approv

e

15 7,200 10 3,840

Submit Requisition 20 480 1 96% 4% 0 -$ low Total 415 15,360 225 7,800

MFMP Approve 10 3840 1 100% 0% 0 -$ high

%

Potenti

al 46% 49%

225 7800

Work Process: Seminole County HD Purchasing Process (one item on PO)

ActionsImpact

Waste EvaluationCurrent Work Process Information

1/12/2014

Day 3



Category Issues/Wastes Root Causes Solutions or

Additional CI Methods

to use

Speed and Cost

to Implement

Work

Process

Waiting,

searching,

inspection

and rework

exist in

current

process

Role clarity

and

standardized

work gaps

exist

Reliable process does not exist

Standardized work and job aids

not readily available and

understood

Measures of performance not

tracked

Process understanding and

training gaps exist

Accountabilities for use not

clear and trusted; multiple

approval steps apparent

Historic budget accountability

concerns

Create an improved

(effective and

efficient) process

particularly in

obtaining quotes and

approval of the

selection that

reduces wastes

(overlapping tasks,

rework) including job

aids, measures and

clear accountability

Operationalize and

roll out process

effectively including

training,

measurement and

accountability for

use.

One week

Kaizen event,

training and

follow-up time

Purchased

cost of OCO,

Promotions

and Services

Gaps exist in

obtaining and

evaluating

quotes,

negotiating

prices in

order to

provide cost

reduction

Decision making criteria for

quoting requirements and

evaluating quotes not available.

Accountability for negotiating not

clear.

Preferred suppliers not identified

and available for convenient use.

Provide decision

making guidance as

part of above

process changes and

job aids

Create and make

available preferred

supplier list based on

quality and

competitiveness

Implement new

policies for

obtaining, evaluating

and negotiating

quotes

One week

Kaizen event,

training and

follow-up time


Issue Improvement Expected Results

Work process If we redesign the process to

eliminate wastes and

redundancies (particularly in the

quoting and approval areas),

provide reference information for

completing tasks, decision making

guidelines and job aids to help

identify needed and correct

information…

… then defects and rework loops

will be reduced and overall labor

time required (employee time) to

complete the process will be

reduced

Cost reduction opportunities in

purchased goods and services

If we identify preferred suppliers

(quality and price) for

requisitioners to use, obtain

multiple quotes for comparisons,

and negotiate as appropriate as

part of an integrated and

consistent work process…

…then, procured costs for OCO,

promotions and services will

decrease as measured by

cumulative savings identified by

requisitioners and the business

area


Note how much shorter,

simpler, with fewer steps

and less rework loops

Day 4



Tests How When Who Successful if…

Identify Need Process & Job Aid

test

Provide instructions on Id Need

process, request form,

justification, binder material

Complete the form, record time

& questions, solicit feedback

(+/-)

Thursda

y

Udgit,

Sara,

Parnav

Form is clear, clean,

complete

Preferred vendor list X# Supervisors

Provide instructions & list

Id missing / not recommended

vendors

Thursda

y

Dianna

List has >90% of

vendors for all

program areas

Select Vendor process & job

aid test

Provide instructions on process,

vendor list, quote form, quote

guidelines, evaluation

guidelines, form to capture

savings

Complete the form, record time

& questions, solicit feedback

(+/-)

Thursda

y

Form is clear, clean,

complete

End to end test

Perform this test for 1. OCO, 2.

Services, 3. Promotions

Identify program areas

Provide instructions on process,

Identify need (binder, form) &

select vendor (vendor list,

quote form, quote guidelines,

evaluation guidelines) job aids

FA Approver review

Thursda

y

Udgit,

Sara,

Parnav

Follow process

Code, form accuracy

Captured

modifications to the

process map


Reasons Learning: Why? Direction: Actions to be taken

Request Form:

+form is simpler

+form has links to codes

+form has references to other

required info (BPO, justification)

-entering in the codes with

separate boxes is clunky

+More structured

-Supr may delegate to requestor

Errors can still be made in the

request form

We still have 4 different request

forms

Modify the code input section for

easier entry – obtain IT assistance

Modify the form to cover supplies

and services

Preferred Vendor List:

+add vendor email, vendor

contact email, STC (Y/N), catalog

(Y/N)

Programs have some preferred

vendors recorded in their own

area

Diana requested list input from 4

program areas

End to End:

We have the potential to save

time for the requestor and

approvers

Day 5



Before Before After After

Step / Activity Work Content

Time (mins.)

Elapsed Time mins.

(including wait time

between step)

Work Content

Time (mins.)

Elapsed Time mins.

(including wait time

between step)

Identify/Clarify

item need 15 1,440

15 120

Approve 5 1,440 - -

Quotes 360 4,800 180 3,360

Submit

Requisition 20 480

20 480

MFMP Approve 15 7,200 10 3,840

Total 415 15,360 225 7,800

% Potential

Improvement 46% 49%

Finish Training materials

Conduct training (1st wk of Feb)

GO LIVE!

Measure, monitor and continue to

improve!


DOH - Seminole County Requisition Process Kaizen Event · Udgit, Sara, Parnav Form is clear, clean,...

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